Miami ranks third among cities with the most home flips, despite a nationwide decline, according to a RealtyTrac report released Thursday.
The city saw a total of 882 flips — homes sold within 12 months of the last purchase — in the first quarter of 2015, making up 8 percent of Miami’s total home sales. That’s a 25-percent decrease in flips year-over-year from 2014, due to decreased inventory of distressed properties.
“Savvy investors are still finding opportunities in our robust real estate environment. The distressed inventory is waning but still being liquidated by the lenders, which bodes well for those individuals positioned to remodel and create turnkey properties for new homeowners,” said Mike Pappas, CEO and president of the Keyes Company, in a statement.
Flipped homes in Miami this year are also staying on the market an average of 20 days longer compared to the first quarter of 2014, according to the report. Though Miami is seeing a decrease in home flips, it still takes the third spot for cities with the highest percentage of flips. Ocala, Florida and Memphis, Tennessee rank higher.
Nationally, the percent of sold homes that were flips in the first quarter was 4 percent. That percentage has hit its lowest point since 2011.
However, the return on investment for home flips is growing: the average gross profit from a flip sale was $72,450 — up from $65,290 in the last quarter of 2014. — Sean Stewart-Muniz